The finance industry has undergone tremendous changes in the past decade. The development of the internet and its widespread use have turned the idea of an integrated financial system into reality, giving birth to embedded financial services. According to industry statistics, the embedded finance market is projected to reach $690 Billion in 2030.
This data point indicates the enormity of its market size. On similar lines, the embedded investment services comprise several investment technologies integrated with the help of APIs, providing a single investment platform for wealth accumulation and management. This article discusses how fintech innovations like embedded investment services are slowly gaining momentum to facilitate an uncomplicated investment process and how they can change how investments are handled, in the future.
The Challenge: Fragmented Financial Ecosystems
Traditionally, investment and wealth management were managed by a select group of financial experts who were part of a closed network ruled by different regulatory bodies and governed by individual financial laws. Investors had to navigate a complex network comprising different investment accounts in different brokerages that functioned autonomously, making the entire investment and wealth management process unnecessarily
difficult.
Over the years, with several financial regulatory bodies adapting to fintech innovations, the idea of a united investment ecosystem was materialised, giving birth to embedded investment services. As embedded investment services and fintech innovations developed over the years, the possibility of an integrated investment platform managed to break these barriers, encouraging investors and financial companies alike to explore new investment
opportunities.
The Opportunity: Making Investing as Easy as a QR Payment
A motivating factor for financial leaders to consider embedded investment systems for consolidating investment services is how effortlessly people have adopted embedded financial services as part of their daily transactions. For example, let’s look at Thailand,
where cash transactions have become obsolete, thanks to apps like TrueMoney Wallet, a digital payment platform that helps people conduct their daily transactions easily. Its flexibility as an embedded financial services platform has seen widespread acceptance.
Now, digital wallets like TrueMoney are taking the next step—offering investment services alongside payments and lending. Users can invest in mutual funds or set up automated contributions with just a few taps, seamlessly blending finance into their daily lives.
Understanding the Embedded Investment Ecosystem Much like embedded finance services, the embedded investment services demonstrate the seamless marriage of investment products presented to customers on a single platform enabling them to make easy investments in one go. The embedded investment ecosystem is
much like embedded finance, except it integrates several investment technologies and offers a single platform enabling investment and wealth management companies to explore the possibilities of allowing their investors to accumulate wealth in wider markets.
How Embedded Investment Services Work
Embedded investment systems use APIs (Application Programming Interfaces) to link non-investment platforms with investment services. APIs facilitate smooth communication among the various financial tools, allowing potential investors to access some of the best options in one place. A great example is InnovestX, which integrates global stock trading, robo-advisory, and automated DCA (Dollar-Cost Averaging) into one streamlined app. By eliminating the friction of multiple logins or physical paperwork, these solutions encourage
more people to start investing.
ViewTrade utilises API integration to connect non-financial platforms with comprehensive investment services. This integration enables users to access different financial products and services through a single platform. Our solutions include:
Investing API: Our state-of-the-art APIs allow companies to integrate specific investment features while controlling the core functionalities.
Investing-as-a-Service: Offers pre-built investment functionality, reducing time-to-market and allowing providers to focus on user experience.
A Full-fledged Investing Platform: Provides complete customization for businesses seeking to offer branded investment services.
Benefits of Digital Platforms
By integrating embedded investment services, digital platforms can: Enhance User Engagement: Offer relevant financial options that increase user interaction and loyalty.
Expand Revenue Streams: Generate new revenue through commission-based investment services.
Improve Customer Experience: Provide a seamless and intuitive financial experience that aligns with users’ expectations.
The Future of Embedded Finance
As fintech innovations evolve, embedded finance will be pivotal in reshaping the financial services landscape. As per industry statistics, 55% of non-financial companies plan to offer embedded finance services within the next two years. In the years ahead, embedded investment will incorporate the following goals to strengthen its position further.
Automated financial coaching: Leveraging technology to educate and impart relevant knowledge to future investors, helping them make informed financial decisions.
Goal-based investing: Tailoring investment strategies to align with companies’ financial objectives, ensuring compliance with their long-term investment goals.
Integration with retirement planning solutions: Integrating embedded investment services with broader retirement planning frameworks to facilitate easy wealth management in the future.
The Rise of a Collaborative Investment Ecosystem
The future of embedded investing lies in cross-industry partnerships. Financial institutions, fintech companies, and non-financial platforms will work together to create comprehensive ecosystems where investing becomes integral to everyday financial management.
At Viewtrade, we are committed to empowering digital platforms with cutting-edge embedded investment solutions. By fostering partnerships between financial providers and non-financial companies, we create a future where financial services are more accessible, intuitive, and integrated into daily life.
In conclusion, embedded investment services are not just a feature; they are the transformative force behind how digital platforms engage with their users. As we move forward, Viewtrade is poised to lead this revolution, leveraging financial technology to create a more inclusive and user-friendly financial ecosystem for all.
FAQs on Embedded Investment Services
- What types of platforms can integrate embedded investment services?
Digital wallets, e-commerce platforms, payroll providers, and even social media apps can seamlessly integrate investment solutions. - How do embedded investments benefit consumers?Embedded investments represent a unified way of investing. Simply put, they make investing easy. Investing in something is more accessible, automated and personalized with embedded investments.
- What are the biggest risks associated with embedded investing?
Regulatory hurdles, data security concerns, and potential misalignment between platform
incentives and user outcomes are some key risks. - Can embedded investments work for institutional investors?
Yes, businesses can integrate these services to facilitate corporate investment programs,
employee stock plans, and automated portfolio management.
